Consider many factors when choosing where to retire

Q:

One of our retirement strategies after we stop working is to sell our home in Massachusetts, which we have owned for nearly 30 years and is completely paid for, invest the proceeds and move to a lower-tax state with less expensive housing and cost of living.

Florida has made itself very attractive to seniors and retirees in terms of taxes, but we do not really care all that much for Florida, at least not as a permanent home. How can we find out about other states and what kind of tax structure they have?

A:

Moving to a less expensive state – both for tax reasons and for lower cost of living – is an excellent retirement strategy. You are wise to consider this move very carefully.

States differ widely in their tax policies, and those policies are changing as states try to tap every resource to boost their budgets. As you noted, Florida has gotten a lot of attention for its attractive tax policies, many of them aimed at seniors.

But other states also have favorable income taxes and other tax policies, including Delaware, Washington and Wyoming.

You can find a complete listing of the tax policies of every state, plus other helpful information, at: retirementliving.com/RLtaxes.html.

Keep in mind that taxes are not the only thing you should examine carefully before making such a life-changing move. Overall quality of life is also important.

What are the housing costs like? Utility costs? Transportation system? Is public transportation available? You may not need it today, but easily accessible public transport may be critical if you ever need to stop driving.

What about health care and its proximity? Are there hospitals and doctors in the area? What about food costs and other shopping? Recreational opportunities? Churches?

Local chambers of commerce are good resources to find the answers to some of these questions. So are local realtors. After you have identified a favorable tax state, be sure to visit several local communities before deciding on your final destination.